Since it’s mid-January, the “new year, new you” posts on social media have started to taper off. But that doesn’t mean you have to give up on your physical or fiscal fitness goals!

Personally, I’m trying to be more active. It was much easier in college when I had more free time and had regularly scheduled swim practices, weight lifting sessions, and a built in support group from my teammates. Prior to having kids, I laced up my shoes on a regular basis, ran half marathons, and even ran one full marathon. When I was training for a half marathon, I had to stick to regularly scheduled runs to be sure I was ready for race day. Now that we have two little ones running around our house, it’s harder for me to stay motivated and work out.

Yes, I’m self-employed and have the ability to set my schedule (and therefore, workout schedule) but this sort of mindset shift after 9 years in the corporate world takes a little time to achieve. It takes time to develop new habits.

After reading Alexandra Franzen’s post about the six types of motivation, my motivation to stay active is linked to achievement, growth, and perhaps a sprinkle of social factors. I love tracking my progress and seeing improvement over time. And yes, sometimes I need an external push to get moving.

So I asked for a Fitbit for Christmas. I wanted a way to measure my current activity and then track my improvement over time. I also needed the friendly reminder to get off my butt and take a little walk if I’d been sitting at my computer for too long.

What the heck does this have to do with financial planning?

Tracking my fitness with a Fitbit reminds me what it was like when we first started tracking our finances with Mint years ago. I had a vague idea that I needed to get off my butt, but I had no idea how few steps I was taking some days. I knew I was tired, but I had no idea how little I slept some nights.

When it came to our finances, the account balances seemed to move in the right direction, but I had no idea how much I was spending on coffee or eating out for lunch. We were saving for a down payment on a house and needed help plugging some of the financial leaks. Now that we have about six years of financial data, we can see how much we’ve progressed by tracking changes in our net income and, more importantly, net worth.

Beyond monitoring physical activity or financial progress, it’s so important to set clear, SMART goals: specific, measurable, attainable, realistic, and timely. Because if you don’t know where you’re going, how are you going to get there?

As a financial planner, I can help you create and prioritize multiple SMART goals aligned with your values. We’ll work together to figure out your motivation style so you can achieve these goals. And along the way, I’ll provide the accountability and assistance you may need through emails and regularly scheduled calls or meetings. I can help you with those adult responsibilities that you know you should do like creating a debt repayment plan, updating beneficiaries, creating an estate plan, or rebalancing asset allocations, but keep putting off

My goal as a financial planner is to help you feel more confident when it comes to your money.

Are you looking to end your financial year on a high note? You’re in luck because there’s still time to make a few last minute financial moves before the ball drops on New Year’s Eve. And even a few that you can take advantage of in 2017 for the 2016 tax year. Some of these moves will save you some money on your 2016 tax bill while others will set you up for a more profitable new year.

Max out 401(k) contributions

There are still one or two paychecks left in the year to max out or contribute juuuust a little more to your employer’s 401(k) plan. So if your budget can swing it, log in to your 401(k) account and bump up your contribution through the end of the year. For 2016, you can contribute up to $18,000 or $24,000 if you’re 50 or older.

Entrepreneurs also have time to contribute to a retirement account

Solo business owners (or a business owner with a family member as their business partner) have until the end of the business tax year to establish a Solo 401(k). They then have until their tax filing deadline (plus extensions) to make any contributions:

Elective deferrals of up to 100% of earned income up to a maximum annual contribution of $18,000 in 2016, or $24,000 in 2016 if age 50 or over; plus

Employer non-elective contributions up to 25% of compensation, with total contributions not to exceed $53,000 for 2015 and 2016.

Note that these elective deferral limits apply per person, not per plan. So if you’re also participating in another employer’s 401(k), say if you’re starting your business while still employed at a corporate job and making 401(k) contributions to take advantage of an employer match, these will count against the limit for employee contributions to an individual 401(k) or SIMPLE IRA.

As for SEP IRA’s, business owners have until their tax filing to establish and make a contribution to that type of retirement account. A SEP IRA is like a traditional IRA, but it is funded solely by employer contributions. A business owner sets up an IRA for each qualifying employee and can contribute up to 25% of each employee’s pay (and 25% of net self-employment income). Annual contributions are limited to the smaller of $53,000 or 25% of compensation for 2015 and 2016. There are no “catch-up” contributions like the solo 401(k). The SEP IRA is a great option for those who do not qualify for a solo 401(k), or who have employees and are looking for a retirement plan for their company.

Max out Traditional or Roth IRA contributions

Another way an individual with earned income can start saving for retirement is by contributing to a Traditional or Roth IRA. You have until April 15, 2017 to make a contribution for the 2016 tax year. For 2016, individuals can contribute up to $5,500 ($6,500 if you’re age 50 or older) or their taxable compensation for the year, if their compensation was less than this dollar limit. However, a Roth IRA contribution might be limited based on tax filing status and income.

Roth IRAs are great because you can withdraw your money tax-free when you’re in retirement. Or you may want to contribute to a traditional IRA and get an income tax deduction. However, that deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Review the IRS guidelines for more details.

Convert a Traditional IRA to a Roth IRA

If you’re in a lower tax bracket now than what you expect in the future (i.e. you were unemployed for part of the year or started a business this year and expect income to grow next year), it might be a good time to convert an old 401(k) or traditional IRA into a Roth. That means you can capture lower taxes today and withdraw that money from your Roth tax-free when you’re in retirement. Make sure the amount you convert keeps you in a low tax bracket.

If it turns out that your income didn’t change the way you expected in the following year, you can reverse a Roth IRA conversion, also know as recharacterization. The recharacterization needs to be completed by the last date, including extensions, for filing or refiling your prior-year tax return, which is typically on or about October 15. You can generally recharacterize all or a portion of what you converted.

Take required minimum distributions

This isn’t usually an issue for my client base since required minimum distributions apply to folks over 70 1/2 with employer retirement plans (if you’re retired) and traditional IRA’s. But this may apply to you if you inherited a retirement plan as a non-spouse beneficiary. The annual deadline to take required minimum distributions is December 31. Make sure you get this done because the penalty is 50% of the required minimum distribution.

Sign up for a class from an accredited school

The lifetime learning credit can cut your tax bill by up to $2,000 a year (20% of tuition up to $10,000), depending on your income. This credit is available for all years of postsecondary education and for courses to acquire or improve job skills. To claim the credit for 2016, need to register and pay for the class by the end of the year and start the class by March 31, 2017.

And while continuing education by an accredited school to maintain a professional license is eligible, if you’re self-employed, you might be better off claiming your education expense as a business deduction.

Unfortunately, couples filing as married filing separate are not eligible to take the credit. Same for couples filing jointly with modified adjusted gross income of $130,000 or more or individuals filing as single, head of household, or qualifying widow(er) with modified adjusted gross income of $65,000 or more.

Take advantage of tax loss harvesting

If you sold some investments at a gain during the year, you can offset this by selling other poorly performing investments at a loss. As explained by the IRS, “Capital gains and losses are classified as long-term or short-term. If you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term. To determine how long you held the asset, count from the day after the day you acquired the asset up to and including the day you disposed of the asset.”

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your ordinary income is the lesser of $3,000, ($1,500 if you are married filing separately) or your total net loss shown on Schedule D. If your net capital loss is more than this limit, you can carry the loss forward to later years.

And while you’re reviewing your investments, take a moment to review your current asset allocation and rebalance them to match your target allocation.

Spend your FSA dollars

If you’ve contributed to a flexible spending account through your employer benefit, make sure you spend those dollars by the end of the year. While some plans have a grace period and may let you carry over some money into 2017, others are “use it or lose it.” Here’s a great listing of eligible healthcare FSA expenses.

Accelerate next year’s tax deductions

If you had unusually high income in 2016 (maybe you won the lottery, earned a large bonus, or sold a business), consider accelerating some of next year’s deductions: prepay your January mortgage payment for the mortgage interest deduction, property taxes, professional dues or subscriptions.

And while some business owners might make some last minute business purchases to offset income, it’s not a dollar for dollar benefit on their ending tax bill. So make wise decisions when it comes to these additional business expenses.

Donate to your favorite charity

Parts of the tax code are designed to encourage certain behaviors. Deducting charitable contributions on your tax returns is just one example. So if you’re feeling particularly generous (and yes, want to lower your taxable income), you have until December 31 to make a donation to your favorite eligible charity.

Contribute to a college savings fund

If you’ve maxed out your retirement savings for the year and want to save for your child’s college education, there’s still time to contribute to a 529 plan. You won’t get a benefit on your federal tax return, but there are tax benefits for some states. Individuals can contribute up to $14,000 ($28,000 for married couples) per student each year, or up to $70,000 ($140,000 for married couples) prorated over a five-year period to someone’s existing account, without incurring a federal gift tax.

Reflect on your finances

Now’s the perfect time to reflect on your finances. Also take a few moments to review your budget, insurance coverage, your estate plan, and account beneficiaries. This is also a great time to make personal and business goals for the upcoming year.

Whether you voted for Hillary Clinton, Donald Trump, a third-party candidate, or wrote in a candidate like Santa Claus a la my three year old daughter, it looks like Donald Trump is going to be our president for the next four years.

What does that mean for you an American investor? Someone who has big goals? Right now, nobody really knows. There have always been times of turmoil and uncertainty. And yes, sometimes the market will dip. But as I shared on social media, the only thing you can control is yourself.

You can control your financial plan and whether you stick with it or not.

You can control how much you’re saving for those big and little financial goals.

You can control your spending and whether you’re getting in or out of debt.

You can control your investment choices and how much risk you want to take.

You can control whether you stick with a traditional employer or start your own business.

If you don’t like the results of yesterday’s election, you can control who you vote for over the next for years for state and local offices.

Are you a little overwhelmed by everything? That’s OK. That’s why I’m here.

As your trusted advisor, I want to give you a sense of comfort. Let’s work through those scary thoughts. Let’s capitalize on the things you can control and try to minimize the things you can’t.

As Carl Richards of Behavior Gap illustrates, an advisor stands between you and a big financial mistake. “We all get greedy when everyone else is greedy and fearful when everyone else is fearful,” Richards said. “And there’s good reasons for it. That type of behavior has kept us alive as a species but it’s terrible for us as investors.”

Nobody knows how the tax laws or economy will change, but we can work together to plan for what we do know and makes some educated assumptions (guesses, really) about how the future will look. When things (yes, including your goals) change, we’ll just adjust your strategy. I’m here to help you make decisions when your guess is wrong.

If you want to talk about your anxieties,

If you want to take control of your financial situation,

If you want to start planning for a brighter future, I’d love to talk with you.

Let’s hop on the phone for 30 minutes to get acquainted. We’ll talk about your most pressing financial question and then we’ll discuss ways we can work together:

This week marks the fifth annual Women’s Money® Week and today is International Women’s Day. Most people are aware of the wage gap between men and women, but the relationship between women and money is more than just that. Women are grossly underserved in the financial world and this is one of the reasons why I founded Brightwater Financial. According to Women’s Money®:

2/3rds of household breadwinners and co-breadwinners are women/moms. Our country’s economic future relies on the financial stability and success of household breadwinners. Did you know that if women were paid the same as men for the same job, we would reduce poverty in America by 50%!

Reducing poverty by 50% is huge! Unfortunately, the 2010-2011 Financial Experience & Behaviors Among Women research study by Prudential found that “fewer than two in 10 women feel “very prepared” to make wise financial decisions. Half indicate that they “need some help,” and one-third feels that they “need a lot of help”.”

When I asked a group of local working moms, many who are self-employed, about their money and financial planning questions, the very first question was around saving for retirement:

When I left my corporate position to become self-employed, I sacrificed contributing to a [company-sponsored] 401(k). I know I could pursue a self-employed 401(k), but I have no idea how that works. I don’t get matching now and it makes me wonder if it’s even worth it. My husband is saving to his. Do I need to resume, too? So, my question would be – do you recommend any options? Is there a bare minimum someone should save?

How Much to Save

Since there are no loans for retirement, let’s start with how much to save. When creating a budget, the “50/20/30 Plan” keeps things fairly simple: 50% Needs, 20% Savings, and 30% Wants. Your bare bones personal and business budgets are the 50% Needs. On the personal side, these are your nonnegotiable expenses: rent/mortgage, utilities, insurance, groceries, etc. On the business side, this might include website hosting and registration fees, service fees when invoicing a client, computer software, or legal and professional fees. The 20% includes saving, retirement, and investing goals. The last 30% for Wants includes hobbies, eating out, and other lifestyle choices. If you have debt payments, include those in the “Savings” bucket.

One quick rule of thumb is that you need to invest and save 25 times your annual expenses to cover retirement. Once you’ve calculated your 50/20/30, compare your current monthly savings to this goal to ensure you’re saving and investing enough. The spreadsheet in this blog post will help you do the math.

If there’s a disconnect between your target and actual savings, how will you bridge the gap? As an entrepreneur, should you be charging more? If so, think about ways you can you add more value to your services. Can you take some classes to improve your skills? If you need to take on additional projects, is it possible to outsource some of the administrative tasks so you can spend more hours performing revenue generating work? Or will you need to decrease some of your expenses?

Where to Save

Traditional or Roth IRA

One way an individual with earned income can start saving for retirement is by contributing to a traditional or Roth IRA. Individuals have until April 18, 2016 (usually it’s April 15) to make a contribution for the 2015 tax year. For 2015, individuals can contribute up to $5,500 ($6,500 if you’re age 50 or older) or their taxable compensation for the year, if their compensation was less than this dollar limit. However, a Roth IRA contribution might be limited based on tax filing status and income.

Roth IRAs are great because you can withdraw your money tax-free when you’re in retirement. Or you may want to contribute to a traditional IRA and get an income tax deduction. However, that deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Review the IRS guidelines for more details.

Also, if you’re a new business owner, you may find yourself in a lower tax bracket than when you were at your corporate job. That means it might be a good time to convert an old 401(k) or traditional IRA into a Roth. That means you can capture lower taxes today and withdraw that money from your Roth tax-free when you’re in retirement.

If you have more money to contribute to retirement than $5,500 ($6,500 if you’re age 50 or older), then you may want to invest in one of the following retirement accounts.

The Solo 401(k)

The Solo 401(k) is a traditional 401(k) plan covering a business owner with no employees, or that person and his or her spouse. A business owner can make the following contributions:

Elective deferrals of up to 100% of earned income up to a maximum annual contribution of $18,000 in 2015 and 2016, or $24,000 in 2015 and 2016 if age 50 or over; plus

Employer non-elective contributions up to 25% of compensation, with total contributions not to exceed $53,000 for 2015 and 2016.

Note that these elective deferral limits apply per person, not per plan. So if you’re also participating in another employer’s 401(k), say if you’re starting your business while still employed at a corporate job and making 401(k) contributions to take advantage of an employer match, these will count against the limit for employee contributions to an individual 401(k) or SIMPLE IRA.

And keep in mind that a solo 401(k) plan is generally required to file an annual report on Form 5500-SF if it has $250,000 or more in assets at the end of the year. A solo 401(k) with fewer assets may be exempt from the annual filing requirement. And your solo 401(k) must be set up by December 31st and funded by your tax return due date in order for contributions to apply for that year.

Simplified Employee Pension Plan (SEP IRA)

A SEP IRA is like a traditional IRA, but it is funded solely by employer contributions. A business owner sets up an IRA for each qualifying employee and can contribute up to 25% of each employee’s pay (and 25% of net self-employment income). Annual contributions are limited to the smaller of $53,000 or 25% of compensation for 2015 and 2016. There are no “catch-up” contributions like the solo 401(k).

The SEP IRA is a great option for those who do not qualify for a solo 401(k), or who have employees and are looking for a retirement plan for their company. Business owners just need to file a form with the IRS (Form 5305-SEP) and open a SEP IRA at a bank or financial institution.

Savings Incentive Match Plan for Employees (SIMPLE) IRA:

A SIMPLE IRA is a retirement plan available to any small business with 100 or fewer employees that doesn’t currently maintain any other retirement plan. It’s a great starter plan that encourages contributions by employees. The plan is funded by employee salary reduction contributions and/or employer contributions.

Employees can decide how much they’d like to contribute, up to $12,500 in 2015 and 2016. Employers have two options:

Match up to 3% of each eligible employee’s compensation (which can be reduced to as low as 1% in any two out of five years). The amount, however, can’t exceed $12,500 ($15,500 for employees age 50 or older, applies to both the 2015 and 2016 tax years); or

Contribute 2% of each eligible employee’s compensation. The amount, however, can’t exceed $5,300 in either the 2015 or 2016 tax years.

How to Choose

Which tax-advantaged retirement plan should you use? That depends on the nature and size of your business (are you solo or have employees?). Additionally, you need to consider your tax filing status, age, and participation in other retirement plans. And since some plans require more administrative and fiduciary responsibilities, you may want to chose one retirement plan over another due to simplicity. If you need help deciding which plan is best for you, I’m happy to discuss your retirement planning needs in more detail.

Pay Yourself First!

Finally, in order to reach your financial goals, you need to pay yourself first. This is important even if you aren’t a business owner! You can achieve this by setting up automatic transfers to your savings, retirement, and/or investment accounts. As an entrepreneur, your income may vary, so allocate your savings based on percentages instead of dollar amounts. For example, make it a goal to set aside 5% of every client payment. This will automatically help you save more dollars when your income is higher and keep you from overextending yourself during leaner months.

Now that we have two kids, the stakes are a little higher in the parenting department. Lately, I’ve been reading the book Peaceful Parent, Happy Kids. While feeding our newborn son at 2am or trying to fall back to sleep, I started thinking about how parenting advice also applies to investing.

Take care of yourself first

As a parent, this one is much easier said that done. We want the best for our children and are willing to make huge sacrifices for them. However, one area that shouldn’t be sacrificed is self-care. Parents need to remember to nurture themselves in small ways throughout the day: reading a book with a glass of wine after the kids are in bed, going for a run, and making time for date night. And let’s not forget sleep! This helps you be more present and patient with your kids. When your cup starts to run low, you may become resentful and unable to meet their needs. Personally, I just started attending Stroller Strides, a mommy and me exercise class, and I already feel physically and mentally stronger.

As for investing and planning for the future, every little bit counts and adds up over time. While saving for your child’s college education is extremely generous, it’s more important for parents to have an emergency fund in place and save for their own retirement first. There’s no guarantee your child will go to college, but I’m pretty sure you’ll want to retire one day. Plus, students have several options in paying for their college education: student loans, work-study programs, scholarships, or community college and then 4-year school, etc.

Keep it Simple

Kids don’t need the latest gadgets or lots of toys that make obnoxious sounds. They also don’t need every item listed on the baby registry guide at Target or Buy Buy Baby to thrive. What they really need are your love and attention, a safe place to live, food, warm clothes, diapers and wipes, and security. Get outside! Go to the park and run around. Go to the library and pick up a stack of books to read together. And don’t forget to put down your phone when playing with your kids. Spending time with them is so much more important than the latest Facebook updates.

Likewise, keep it simple when it comes to investing. Think about investing in low-cost index funds through Betterment or Vanguard. Set up automatic transfers and get back to spending time with your family. Of course check in occasionally to make sure your asset allocations aren’t drifting off course.

It’s not going to be perfect

When it comes to parenting, you’re never going to be perfect (so says the recovering perfectionist). As I said above, your kids just want your love and presence. And guess what? Your toddler or teenager isn’t going to be perfect either. Raising kids is messy: in a spilled milk and emotional sort of way. Give yourself the grace to be imperfect and accept their imperfections. I recently tucked this card into the picture frame on my dresser to remind me that I’m doing great, even when I might think otherwise.

There are thousands of investment options in the marketplace, so there may be several funds that are good enough for you. Instead of stressing about picking the perfect portfolio, your job is just to pick one with the asset allocation that feels right to you. Sophia Bera also reminds young investors that at this stage, asset accumulation is more important than asset allocation. And to make things a little easier, you don’t need each individual account to match your target asset allocation. What matters is that the TOTAL across all accounts matches your desired asset allocation.

Past performance is no guarantee of future results

If kids came with a prospectus, I’m pretty sure it would include the standard disclosure: “Past performance is no guarantee of future results.” There will be highs and lows while raising your kids, sometimes in the same day. Additionally, every child is different, so what worked with one probably won’t work with another. Each little person comes with their own personalities, gifts, and needs. It’s our job as parents to treat them uniquely, not equally. For example, our daughter slept in our room in the bassinet of a pack and play for 3 or 4 months. On the other hand, we moved our son to a separate room at 6 weeks with white noise playing in the background since he’s such a loud sleeper. Now everyone sleeps better.

Historically, the stock market has an annual return of roughly 7 – 8%. Of course there have been bull markets with fantastic gains, as well as bear markets with significant declines. And the returns of individual funds may or may not match the market’s returns, so it’s important to understand your investments. Fortunately, you can decrease your investment risk without decreasing your expected returns by diversifying your portfolio, or putting a little bit of money into several investments. You can easily do this by investing in an index fund that matches the entire market (like the S&P 500). If you have a little invested in every company, if one goes bankrupt, it won’t sink your whole portfolio. Additionally, investing in low-cost funds will ensure that more of your investment’s returns stay in your pockets.